Full Text of SB1545 102nd General Assembly
SB1545sam001 102ND GENERAL ASSEMBLY | Sen. Antonio Muñoz Filed: 4/15/2021
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| 1 | | AMENDMENT TO SENATE BILL 1545
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1545 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Vehicle Code is amended by | 5 | | changing Sections 3-114, 3-117.1, 3-301 and as follows:
| 6 | | (625 ILCS 5/3-114) (from Ch. 95 1/2, par. 3-114)
| 7 | | Sec. 3-114. Transfer by operation of law.
| 8 | | (a) If the interest of an owner in a vehicle passes to | 9 | | another other
than by voluntary transfer, the transferee | 10 | | shall, except as provided in
paragraph (b), promptly mail or | 11 | | deliver within 20 days to the
Secretary of State the last | 12 | | certificate of title, if available, proof of
the transfer, and | 13 | | his application for a new certificate in the form the
| 14 | | Secretary of State prescribes. It shall be unlawful for any | 15 | | person
having possession of a certificate of title for a motor | 16 | | vehicle,
semi-trailer, or house car by reason of his having a |
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| 1 | | lien or encumbrance
on such vehicle, to fail or refuse to | 2 | | deliver such certificate to the
owner, upon the satisfaction | 3 | | or discharge of the lien or encumbrance,
indicated upon such | 4 | | certificate of title.
| 5 | | (b) If the interest of an owner in a vehicle passes to | 6 | | another under
the provisions of the Small Estates provisions | 7 | | of the Probate Act of 1975 the
transferee shall promptly mail | 8 | | or deliver to the Secretary of State, within 120
days, the last | 9 | | certificate of title, if available, the documentation required
| 10 | | under the provisions of the Probate Act of 1975, and an | 11 | | application for
certificate of title. The Small Estate | 12 | | Affidavit form shall be furnished by the
Secretary of State. | 13 | | The transfer may be to the transferee or to the nominee of
the | 14 | | transferee.
| 15 | | (c) If the interest of an owner in a vehicle passes to | 16 | | another under
other provisions of the Probate Act of 1975, as | 17 | | amended, and the transfer is
made by a representative or | 18 | | guardian, such transferee shall promptly mail or
deliver to | 19 | | the Secretary of State, the last certificate of title, if | 20 | | available,
and a certified copy of the letters of office or | 21 | | guardianship, and an
application for certificate of title. | 22 | | Such application shall be made before the
estate is closed. | 23 | | The transfer may be to the transferee or to the nominee of
the | 24 | | transferee.
| 25 | | (d) If the interest of an owner in joint tenancy passes to | 26 | | the other
joint tenant with survivorship rights as provided by |
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| 1 | | law, the transferee
shall promptly mail or deliver to the | 2 | | Secretary of State, the last
certificate of title, if | 3 | | available, proof of death of the one joint
tenant and | 4 | | survivorship of the surviving joint tenant, and an
application | 5 | | for certificate of title. Such application shall be made
| 6 | | within 120 days after the death of the joint tenant. The | 7 | | transfer may
be to the transferee or to the nominee of the | 8 | | transferee.
| 9 | | (d-5) If the interest of an owner passes to the owner's | 10 | | spouse or if the spouse otherwise acquires ownership of the | 11 | | vehicle, then the transferee shall promptly mail or deliver to | 12 | | the Secretary of State, proof of (i) the owner's death; (ii) | 13 | | the transfer or acquisition of ownership; and (iii) proof of | 14 | | the marital relationship between the owner and the transferee, | 15 | | along with the last certificate of title, if available, and an | 16 | | application for certificate of title along with the | 17 | | appropriate fees and taxes, if applicable. The application | 18 | | shall be made within 180 days after the death of the owner. | 19 | | (e) The Secretary of State shall transfer a decedent's | 20 | | vehicle title to
any legatee, representative or heir of the | 21 | | decedent who submits to the
Secretary a death certificate and | 22 | | an affidavit by an attorney at law on the
letterhead | 23 | | stationery of the attorney at law stating the facts of the
| 24 | | transfer.
| 25 | | (f) Repossession with assignment of title. In all cases | 26 | | wherein a
lienholder has repossessed a vehicle by other
than |
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| 1 | | judicial process and holds it for resale under a security | 2 | | agreement, and
the owner of record has executed an assignment | 3 | | of the existing certificate of
title after default, the | 4 | | lienholder may proceed to sell or otherwise dispose of
the | 5 | | vehicle
as authorized under the Uniform Commercial Code. Upon | 6 | | selling the vehicle to
another person, the lienholder need not | 7 | | send the certificate of title to the
Secretary of State, but | 8 | | shall promptly and within 20 days mail or deliver to
the | 9 | | purchaser
as transferee the existing certificate of title for | 10 | | the repossessed vehicle,
reflecting the release of the | 11 | | lienholder's security interest in the vehicle.
The application | 12 | | for a certificate of title made by the
purchaser shall comply | 13 | | with subsection (a) of Section 3-104 and be accompanied
by the | 14 | | existing certificate of title for the repossessed vehicle.
The | 15 | | lienholder shall execute the assignment and warranty of title | 16 | | showing the
name and address of the purchaser in the spaces | 17 | | provided therefor on the
certificate of title or as the | 18 | | Secretary of State prescribes. The lienholder
shall complete | 19 | | the assignment of title in the certificate of title to reflect
| 20 | | the transfer of the vehicle to the lienholder and also a | 21 | | reassignment to
reflect the transfer from the lienholder to | 22 | | the purchaser. For this purpose,
the lienholder is | 23 | | specifically authorized
to complete and execute
the space | 24 | | reserved in the certificate of title for a dealer | 25 | | reassignment,
notwithstanding that the lienholder is not a | 26 | | licensed dealer. Nothing herein
shall be construed to mean |
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| 1 | | that the lienholder is taking title to the
repossessed vehicle | 2 | | for purposes of liability for retailer occupation, vehicle
| 3 | | use, or other tax with respect to the proceeds from the | 4 | | repossession sale.
Delivery of the existing certificate of | 5 | | title to the purchaser shall be deemed
disclosure to the | 6 | | purchaser of the owner of the vehicle.
| 7 | | (f-5) Repossession without assignment of title. Subject to | 8 | | subsection (f-30), in all cases wherein a
lienholder has | 9 | | repossessed a vehicle
by other than judicial process and holds | 10 | | it for resale under a security
agreement,
and the owner of | 11 | | record has not executed an assignment of the existing
| 12 | | certificate of title,
the lienholder shall comply with the | 13 | | following provisions:
| 14 | | (1) Prior to sale, the lienholder shall deliver or | 15 | | mail to the owner at
the owner's last known address and to | 16 | | any other lienholder of record, a notice
of redemption
| 17 | | setting forth the following information: (i) the name of | 18 | | the owner of record
and in bold type at or near the top of | 19 | | the notice a statement that the owner's
vehicle was | 20 | | repossessed on a specified date for failure to make | 21 | | payments on the
loan (or other reason), (ii) a
description | 22 | | of the vehicle subject to the lien sufficient to identify | 23 | | it, (iii)
the right of the owner to redeem the vehicle, | 24 | | (iv) the lienholder's intent to
sell or otherwise dispose | 25 | | of the vehicle after the expiration of 21 days from
the | 26 | | date of mailing or delivery of the notice, and (v) the |
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| 1 | | name, address, and
telephone number of the lienholder from
| 2 | | whom information may be
obtained concerning the amount due | 3 | | to redeem the vehicle and from whom
the vehicle may be | 4 | | redeemed under
Section 9-623 of the Uniform Commercial | 5 | | Code. At the
lienholder's option, the
information required | 6 | | to be set forth in this notice of redemption
may be made a | 7 | | part of or accompany the notification of sale or other
| 8 | | disposition
required under Section 9-611 of the
Uniform
| 9 | | Commercial Code, but none of the information required by | 10 | | this notice shall
be construed to impose any requirement | 11 | | under Article 9 of the Uniform
Commercial Code.
| 12 | | (2) With respect to the repossession of a vehicle used | 13 | | primarily for
personal, family, or household purposes, the | 14 | | lienholder shall also deliver or
mail to the owner at the | 15 | | owner's last known address an affidavit
of defense. The | 16 | | affidavit of defense shall accompany the notice of
| 17 | | redemption
required in subdivision (f-5)(1) of
this | 18 | | Section. The affidavit of defense shall (i) identify the | 19 | | lienholder,
owner, and the
vehicle; (ii) provide space for | 20 | | the owner to state the defense claimed by the
owner; and | 21 | | (iii) include an acknowledgment by the owner that the | 22 | | owner may be
liable to the lienholder for fees, charges, | 23 | | and costs incurred by the
lienholder in establishing the | 24 | | insufficiency or invalidity of the owner's
defense. To | 25 | | stop the transfer of title, the affidavit of defense must | 26 | | be
received by the
lienholder no later than 21 days after |
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| 1 | | the date of mailing or delivery of the
notice required in | 2 | | subdivision (f-5)(1) of this Section. If the lienholder
| 3 | | receives the affidavit from the owner in a timely manner, | 4 | | the lienholder must
apply to a court of competent | 5 | | jurisdiction to determine if the lienholder is
entitled to | 6 | | possession of the vehicle.
| 7 | | (3) Upon selling the vehicle to another person, the | 8 | | lienholder need not
send the certificate of title to the | 9 | | Secretary of State, but shall
promptly and within 20 days | 10 | | mail or deliver to the purchaser as transferee (i)
the | 11 | | existing
certificate of title for the repossessed vehicle, | 12 | | reflecting the release of the
lienholder's security | 13 | | interest in the vehicle; and (ii) an affidavit of
| 14 | | repossession made by or on behalf of the lienholder which | 15 | | provides the
following information: that the vehicle was | 16 | | repossessed, a description of the
vehicle sufficient to | 17 | | identify it, whether the vehicle has been damaged in
| 18 | | excess of 50% 33 1/3% of its fair market value as required | 19 | | under subdivision (b)(3)
of Section 3-117.1, that the | 20 | | owner and any other lienholder of record were
given the | 21 | | notice required in subdivision (f-5)(1) of this Section,
| 22 | | that the owner of record was given the affidavit of | 23 | | defense required in
subdivision (f-5)(2) of this Section,
| 24 | | that the interest of the owner was lawfully terminated or | 25 | | sold pursuant to the
terms of the security agreement, and | 26 | | the purchaser's name and address.
If the vehicle is |
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| 1 | | damaged in excess of 50% 33 1/3% of its fair market value, | 2 | | the
lienholder shall make application for a salvage | 3 | | certificate under Section
3-117.1 and transfer the vehicle | 4 | | to a person eligible to receive assignments of
salvage | 5 | | certificates identified in Section 3-118.
| 6 | | (4) The application for a certificate of title made by | 7 | | the purchaser shall
comply with subsection (a) of Section | 8 | | 3-104 and be accompanied by the affidavit
of repossession | 9 | | furnished by the lienholder and the existing certificate | 10 | | of
title for the repossessed vehicle.
The lienholder shall | 11 | | execute the assignment and warranty of title showing the
| 12 | | name and address of the purchaser in the spaces provided | 13 | | therefor on the
certificate of title or as the Secretary | 14 | | of State prescribes. The lienholder
shall complete the | 15 | | assignment of title in the certificate of title to reflect
| 16 | | the transfer of the vehicle to the lienholder and also a | 17 | | reassignment to
reflect the transfer from the lienholder | 18 | | to the purchaser. For this purpose,
the lienholder is | 19 | | specifically authorized to execute the assignment on | 20 | | behalf
of the owner as seller if the owner has not done so | 21 | | and to complete and execute
the space reserved in the | 22 | | certificate of title for a dealer reassignment,
| 23 | | notwithstanding that the lienholder is not a licensed | 24 | | dealer. Nothing herein
shall be construed to mean that the | 25 | | lienholder is taking title to the
repossessed vehicle for | 26 | | purposes of liability for retailer occupation, vehicle
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| 1 | | use, or other tax with respect to the proceeds from the | 2 | | repossession sale.
Delivery of the existing certificate of | 3 | | title to the purchaser shall be deemed
disclosure to the | 4 | | purchaser of the owner of the vehicle.
In the event the | 5 | | lienholder does not hold
the certificate of title for the | 6 | | repossessed vehicle, the lienholder shall
make application | 7 | | for and may obtain a new certificate of title in the name | 8 | | of
the lienholder upon furnishing information satisfactory | 9 | | to the Secretary of
State. Upon receiving the new | 10 | | certificate of title, the lienholder may proceed
with the | 11 | | sale described in subdivision (f-5)(3), except that upon | 12 | | selling the
vehicle the lienholder shall promptly and | 13 | | within 20 days mail or deliver to the
purchaser the new | 14 | | certificate of title reflecting the assignment and | 15 | | transfer
of title to the purchaser.
| 16 | | (5) Neither the lienholder nor the owner shall file | 17 | | with the Office of
the Secretary of State the notice of | 18 | | redemption or affidavit of defense
described in | 19 | | subdivisions (f-5)(1) and (f-5)(2) of this Section. The | 20 | | Office of
the Secretary of State shall not determine the | 21 | | merits of an owner's affidavit
of defense, nor consider | 22 | | any allegations or assertions regarding the validity
or | 23 | | invalidity of a lienholder's claim to the vehicle or an | 24 | | owner's asserted
defenses to the repossession action.
| 25 | | (f-7) Notice of reinstatement in certain cases.
| 26 | | (1) Subject to subsection (f-30), if, at the time of |
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| 1 | | repossession by a lienholder that is seeking to
transfer | 2 | | title pursuant to subsection (f-5), the owner has paid an | 3 | | amount equal
to 30% or more of the deferred payment price | 4 | | or total of payments due, the
owner may, within 21 days of | 5 | | the date of repossession, reinstate the contract
or loan | 6 | | agreement and recover the vehicle from the lienholder by | 7 | | tendering in a
lump sum (i) the total of all unpaid | 8 | | amounts, including any unpaid delinquency
or deferral | 9 | | charges due at the date of reinstatement, without | 10 | | acceleration; and
(ii) performance necessary to cure any | 11 | | default other than nonpayment of the
amounts due; and | 12 | | (iii)
all reasonable costs and fees incurred by the | 13 | | lienholder in retaking, holding,
and preparing the vehicle | 14 | | for disposition and in arranging for the sale of the
| 15 | | vehicle. Reasonable costs and fees incurred by the | 16 | | lienholder include without
limitation repossession and | 17 | | storage expenses and, if authorized by the contract
or | 18 | | loan agreement, reasonable attorneys' fees and collection | 19 | | agency charges.
| 20 | | (2) Tender of payment and performance pursuant to this | 21 | | limited right of
reinstatement restores to the owner his | 22 | | rights under the contract or loan
agreement as though no | 23 | | default had occurred. The owner has the right to
reinstate | 24 | | the contract or loan agreement and recover the vehicle | 25 | | from the
lienholder only once under this subsection. The | 26 | | lienholder may, in the
lienholder's sole discretion, |
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| 1 | | extend the period during which the owner may
reinstate the | 2 | | contract or loan agreement and recover the vehicle beyond | 3 | | the 21
days allowed under this subsection, and the | 4 | | extension shall not subject the
lienholder to liability to | 5 | | the owner under the laws of this State.
| 6 | | (3) The lienholder shall deliver or mail written | 7 | | notice to the owner at
the
owner's last known address, | 8 | | within 3 business days of the date of repossession,
of the | 9 | | owner's right to reinstate the contract or loan agreement | 10 | | and recover
the vehicle pursuant to the limited right of | 11 | | reinstatement described in this
subsection. At the | 12 | | lienholder's option, the information required to be set
| 13 | | forth in this notice of reinstatement may be made part of | 14 | | or accompany the
notice of redemption required in | 15 | | subdivision (f-5)(1) of this Section and the
notification | 16 | | of sale or other disposition required under
Section 9-611 | 17 | | of the Uniform Commercial Code, but none of the
| 18 | | information
required by this notice of reinstatement shall | 19 | | be construed to impose any
requirement under Article 9 of | 20 | | the Uniform Commercial Code.
| 21 | | (4) The reinstatement period, if applicable, and the | 22 | | redemption period
described in subdivision (f-5)(1) of | 23 | | this Section, shall run concurrently if
the information | 24 | | required to be set forth in the notice of reinstatement is | 25 | | part
of or accompanies the notice of redemption. In any | 26 | | event, the 21 day
redemption period described in |
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| 1 | | subdivision (f-5)(1) of this Section shall
commence on the | 2 | | date of
mailing or delivery to the owner of the | 3 | | information required to be set forth in
the notice of | 4 | | redemption, and the 21 day reinstatement period described | 5 | | in this
subdivision, if applicable, shall commence on the | 6 | | date of mailing or delivery
to the owner of the | 7 | | information required to be set forth in the notice of
| 8 | | reinstatement.
| 9 | | (5) The Office of the Secretary of State shall not | 10 | | determine the merits of
an owner's claim of right to | 11 | | reinstatement, nor consider any allegations or
assertions | 12 | | regarding the validity or invalidity of a lienholder's | 13 | | claim to the
vehicle or an owner's asserted right to | 14 | | reinstatement. Where a lienholder is
subject to licensing | 15 | | and regulatory supervision by the State of Illinois, the
| 16 | | lienholder shall be subject to all of the powers and | 17 | | authority of the
lienholder's primary State regulator to | 18 | | enforce compliance with the procedures
set forth in this | 19 | | subsection (f-7).
| 20 | | (f-10) Repossession by judicial process. In all cases | 21 | | wherein a lienholder
has repossessed a vehicle by
judicial
| 22 | | process and holds it for resale under a security agreement, | 23 | | order for replevin,
or other court order establishing the | 24 | | lienholder's right to possession of the
vehicle, the | 25 | | lienholder may proceed to sell or otherwise dispose of the | 26 | | vehicle
as authorized under the Uniform Commercial Code or the |
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| 1 | | court order. Upon
selling the vehicle to another person, the | 2 | | lienholder need not send the
certificate of title to the | 3 | | Secretary of State, but shall promptly and within
20 days mail | 4 | | or
deliver to the purchaser as transferee (i) the existing | 5 | | certificate of title
for the repossessed vehicle reflecting | 6 | | the release of the lienholder's security
interest in the | 7 | | vehicle; (ii) a certified copy of the court order; and (iii) a
| 8 | | bill of sale identifying the new owner's name and address and | 9 | | the year, make,
model, and vehicle identification number of | 10 | | the vehicle.
The application for a certificate of title made | 11 | | by the purchaser shall comply
with subsection (a) of Section | 12 | | 3-104 and be accompanied by the certified copy
of the court | 13 | | order furnished by the
lienholder and the existing certificate | 14 | | of title for the repossessed vehicle.
The lienholder shall | 15 | | execute the assignment and warranty of title showing the
name | 16 | | and address of the purchaser in the spaces provided therefor | 17 | | on the
certificate of title or as the Secretary of State | 18 | | prescribes. The lienholder
shall complete the assignment of | 19 | | title in the certificate of title to reflect
the transfer of | 20 | | the vehicle to the lienholder and also a reassignment to
| 21 | | reflect the transfer from the lienholder to the purchaser. For | 22 | | this purpose,
the lienholder is specifically authorized to | 23 | | execute the assignment on behalf
of the owner as seller if the | 24 | | owner has not done so and to complete and execute
the space | 25 | | reserved in the certificate of title for a dealer | 26 | | reassignment,
notwithstanding that the lienholder is not a |
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| 1 | | licensed dealer. Nothing herein
shall be construed to mean | 2 | | that the lienholder is taking title to the
repossessed vehicle | 3 | | for purposes of liability for retailer occupation, vehicle
| 4 | | use, or other tax with respect to the proceeds from the | 5 | | repossession sale.
Delivery of the existing certificate of | 6 | | title to the purchaser shall be deemed
disclosure to the | 7 | | purchaser of the owner of the vehicle.
In the event the
| 8 | | lienholder does not hold the certificate of title for the | 9 | | repossessed vehicle,
the lienholder shall
make application for | 10 | | and may obtain a new certificate of title in the name of
the | 11 | | lienholder upon furnishing information satisfactory to the | 12 | | Secretary of
State. Upon receiving the new certificate of | 13 | | title, the lienholder may proceed
with the sale described in | 14 | | this subsection, except that upon selling the
vehicle the | 15 | | lienholder shall promptly and within 20 days mail or deliver | 16 | | to the
purchaser the new certificate of title reflecting the | 17 | | assignment and transfer
of title to the purchaser.
| 18 | | (f-15) The Secretary of State shall not issue a | 19 | | certificate of title to a
purchaser under subsection (f), | 20 | | (f-5), or (f-10) of this Section, unless the
person from whom | 21 | | the vehicle has been repossessed by the lienholder is shown to
| 22 | | be the last registered owner of the motor vehicle. The | 23 | | Secretary of State may
provide by rule for the standards to be | 24 | | followed by a lienholder in assigning
and transferring | 25 | | certificates of title with respect to repossessed vehicles.
| 26 | | (f-20) If applying for a salvage certificate or a junking |
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| 1 | | certificate, the lienholder
shall within 20 days make an | 2 | | application to the Secretary of State for a salvage | 3 | | certificate or a junking certificate, as
set forth in this | 4 | | Code. The Secretary of State shall
not issue a salvage
| 5 | | certificate or a junking
certificate to such lienholder unless | 6 | | the person from whom such vehicle has
been repossessed is | 7 | | shown to be the last registered owner of such motor
vehicle and | 8 | | such lienholder establishes to the satisfaction of
the | 9 | | Secretary of State that he is entitled to such
salvage | 10 | | certificate or junking certificate. The Secretary
of State may | 11 | | provide by rule for the standards to be followed by
a | 12 | | lienholder in order to obtain a
salvage certificate or junking | 13 | | certificate for a
repossessed vehicle.
| 14 | | (f-25) If the interest of an owner in a mobile home, as | 15 | | defined in the
Mobile Home Local Services Tax Act, passes to | 16 | | another under the provisions of
the
Mobile Home Local Services | 17 | | Tax Enforcement Act, the transferee shall promptly
mail or | 18 | | deliver to the Secretary of State (i) the last certificate of | 19 | | title, if
available, (ii) a certified copy of the court order | 20 | | ordering the transfer of
title, and (iii) an application for | 21 | | certificate of title.
| 22 | | (f-30) Bankruptcy. If the repossessed vehicle is the | 23 | | subject of a bankruptcy proceeding or discharge:
| 24 | | (1) the lienholder may proceed to sell or otherwise | 25 | | dispose of the vehicle as authorized by the Bankruptcy | 26 | | Code and the Uniform Commercial Code; |
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| 1 | | (2) the notice of redemption, affidavit of defense, | 2 | | and notice of reinstatement otherwise required to be sent | 3 | | by the lienholder to the owner of record or other | 4 | | lienholder of record under this Section are not required | 5 | | to be delivered or mailed; | 6 | | (3) the requirement to delay disposition of the | 7 | | vehicle for 21 days, (i) from the mailing or delivery of | 8 | | the notice of redemption under subdivision (f-5)(1) of | 9 | | this Section, (ii) from the mailing or delivery of the | 10 | | affidavit of defense under subdivision (f-5)(2) of this | 11 | | Section, or (iii) from the date of repossession when the | 12 | | owner is entitled to a notice of reinstatement under | 13 | | subsection (f-7) of this Section, does not apply; | 14 | | (4) the affidavit of repossession that is required | 15 | | under subdivision (f-5)(3) shall contain a notation of | 16 | | "bankruptcy" where the affidavit requires the date of the | 17 | | mailing or delivery of the notice of redemption. The | 18 | | notation of "bankruptcy" means the lienholder makes no | 19 | | sworn representations regarding the mailing or delivery of | 20 | | the notice of redemption or affidavit of defense or | 21 | | lienholder's compliance with the requirements that | 22 | | otherwise apply to the notices listed in this subsection | 23 | | (f-30), and makes no sworn representation that the | 24 | | lienholder assumes liability or costs for any litigation | 25 | | that may arise from the issuance of a certificate of title | 26 | | based on the excluded representations; |
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| 1 | | (5) the right of redemption, the right to assert a | 2 | | defense to the transfer of title, and reinstatement rights | 3 | | under this Section do not apply; and | 4 | | (6) references to judicial process and court orders in | 5 | | subsection (f-10) of this Section do not include | 6 | | bankruptcy proceedings or orders.
| 7 | | (g) A person holding a certificate of title whose interest | 8 | | in the
vehicle has been extinguished or transferred other than | 9 | | by voluntary
transfer shall mail or deliver the certificate, | 10 | | within 20 days
upon request of the Secretary of State. The | 11 | | delivery of the certificate
pursuant to the request of the | 12 | | Secretary of State does not affect the
rights of the person | 13 | | surrendering the certificate, and the action of the
Secretary | 14 | | of State in issuing a new certificate of title as provided
| 15 | | herein is not conclusive upon the rights of an owner or | 16 | | lienholder named
in the old certificate.
| 17 | | (h) The Secretary of State may decline to process any | 18 | | application
for a transfer of an interest in a vehicle | 19 | | hereunder if any fees or
taxes due under this Act from the | 20 | | transferor or the transferee have not
been paid upon | 21 | | reasonable notice and demand.
| 22 | | (i) The Secretary of State shall not be held civilly or | 23 | | criminally
liable to any person because any purported | 24 | | transferor may not have had
the power or authority to make a | 25 | | transfer of any interest in any vehicle
or because a | 26 | | certificate of title issued in error is subsequently used to
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| 1 | | commit a fraudulent act.
| 2 | | (Source: P.A. 99-260, eff. 1-1-16 .)
| 3 | | (625 ILCS 5/3-117.1) (from Ch. 95 1/2, par. 3-117.1)
| 4 | | Sec. 3-117.1. When junking certificates or salvage | 5 | | certificates must
be obtained. | 6 | | (a) Except as provided in Chapter 4 and Section 3-117.3 of | 7 | | this Code, a person who possesses a
junk vehicle shall within | 8 | | 15 days cause the certificate of title, salvage
certificate, | 9 | | certificate of purchase, or a similarly acceptable | 10 | | out-of-state
document of ownership to be surrendered to the | 11 | | Secretary of State along with an
application for a junking | 12 | | certificate, except as provided in Section 3-117.2,
whereupon | 13 | | the Secretary of State shall issue to such a person a junking
| 14 | | certificate, which shall authorize the holder thereof to | 15 | | possess, transport,
or, by an endorsement, transfer ownership | 16 | | in such junked vehicle, and a
certificate of title shall not | 17 | | again be issued for such vehicle. The owner of a junk vehicle | 18 | | is not required to surrender the certificate of title under | 19 | | this subsection if (i) there is no lienholder on the | 20 | | certificate of title or (ii) the owner of the junk vehicle has | 21 | | a valid lien release from the lienholder releasing all | 22 | | interest in the vehicle and the owner applying for the junk | 23 | | certificate matches the current record on the certificate of | 24 | | title file for the vehicle.
| 25 | | A licensee who possesses a junk vehicle and a Certificate |
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| 1 | | of Title,
Salvage Certificate, Certificate of Purchase, or a | 2 | | similarly acceptable
out-of-state document of ownership for | 3 | | such junk vehicle, may transport the
junk vehicle to another | 4 | | licensee prior to applying for or obtaining a
junking | 5 | | certificate, by executing a uniform invoice. The licensee
| 6 | | transferor shall furnish a copy of the uniform invoice to the | 7 | | licensee
transferee at the time of transfer. In any case, the | 8 | | licensee transferor
shall apply for a junking certificate in | 9 | | conformance with Section 3-117.1
of this Chapter. The | 10 | | following information shall be contained on a uniform
invoice:
| 11 | | (1) The business name, address and dealer license | 12 | | number of the person
disposing of the vehicle, junk | 13 | | vehicle or vehicle cowl;
| 14 | | (2) The name and address of the person acquiring the | 15 | | vehicle, junk
vehicle or vehicle cowl, and if that person | 16 | | is a dealer, the Illinois or
out-of-state dealer license | 17 | | number of that dealer;
| 18 | | (3) The date of the disposition of the vehicle, junk | 19 | | vehicle or vehicle
cowl;
| 20 | | (4) The year, make, model, color and description of | 21 | | each vehicle, junk
vehicle or vehicle cowl disposed of by | 22 | | such person;
| 23 | | (5) The manufacturer's vehicle identification number, | 24 | | Secretary of State
identification number or Illinois | 25 | | Department of State Police number,
for each vehicle, junk | 26 | | vehicle or vehicle cowl part disposed of by such person;
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| 1 | | (6) The printed name and legible signature of the | 2 | | person or agent
disposing of the vehicle, junk vehicle or | 3 | | vehicle cowl; and
| 4 | | (7) The printed name and legible signature of the | 5 | | person accepting
delivery of the vehicle, junk vehicle or | 6 | | vehicle cowl.
| 7 | | The Secretary of State may certify a junking manifest in a | 8 | | form prescribed by
the Secretary of State that reflects those | 9 | | vehicles for which junking
certificates have been applied or | 10 | | issued. A junking manifest
may be issued to any person and it | 11 | | shall constitute evidence of ownership
for the vehicle listed | 12 | | upon it. A junking manifest may be transferred only
to a person | 13 | | licensed under Section 5-301 of this Code as a scrap | 14 | | processor.
A junking manifest will allow the transportation of | 15 | | those
vehicles to a scrap processor prior to receiving the | 16 | | junk certificate from
the Secretary of State.
| 17 | | (b) An application for a salvage certificate shall be | 18 | | submitted to the
Secretary of State in any of the following | 19 | | situations:
| 20 | | (1) When an insurance company makes a payment of | 21 | | damages on a total loss
claim for a vehicle, the insurance | 22 | | company shall be deemed to be the owner of
such vehicle and | 23 | | the vehicle shall be considered to be salvage except that
| 24 | | ownership of (i) a vehicle that has incurred only hail | 25 | | damage that does
not
affect the operational safety of the | 26 | | vehicle or (ii) any vehicle
9 model years of age or older |
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| 1 | | may, by agreement between
the registered owner and the | 2 | | insurance company, be retained by the registered
owner of | 3 | | such vehicle. The insurance company shall promptly deliver | 4 | | or mail
within 20 days the certificate of title along with | 5 | | proper application and fee
to the Secretary of State, and | 6 | | a salvage certificate shall be issued in the
name of the | 7 | | insurance company. Notwithstanding the foregoing, an | 8 | | insurer making payment of damages on a total loss claim | 9 | | for the theft of a vehicle shall not be required to apply | 10 | | for a salvage certificate unless the vehicle is recovered | 11 | | and has incurred damage that initially would have caused | 12 | | the vehicle to be declared a total loss by the insurer. | 13 | | (1.1) When a vehicle of a self-insured company is to | 14 | | be sold in the State of Illinois and has sustained damaged | 15 | | by collision, fire, theft, rust corrosion, or other means | 16 | | so that the self-insured company determines the vehicle to | 17 | | be a total loss, or if the cost of repairing the damage, | 18 | | including labor, would be greater than 70% of its fair | 19 | | market value without that damage, the vehicle shall be | 20 | | considered salvage. The self-insured company shall | 21 | | promptly deliver the certificate of title along with | 22 | | proper application and fee to the Secretary of State, and | 23 | | a salvage certificate shall be issued in the name of the | 24 | | self-insured company. A self-insured company making | 25 | | payment of damages on a total loss claim for the theft of a | 26 | | vehicle may exchange the salvage certificate for a |
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| 1 | | certificate of title if the vehicle is recovered without | 2 | | damage. In such a situation, the self-insured shall fill | 3 | | out and sign a form prescribed by the Secretary of State | 4 | | which contains an affirmation under penalty of perjury | 5 | | that the vehicle was recovered without damage and the | 6 | | Secretary of State may, by rule, require photographs to be | 7 | | submitted.
| 8 | | (2) When a vehicle the ownership of which has been | 9 | | transferred to any
person through a certificate of | 10 | | purchase from acquisition of the vehicle at an
auction, | 11 | | other dispositions as set forth in Sections 4-208 and | 12 | | 4-209
of this Code, or a lien arising under Section | 13 | | 18a-501 of this Code shall be deemed
salvage or junk at the | 14 | | option of the purchaser. The person acquiring such
vehicle | 15 | | in such manner shall promptly deliver or mail, within 20 | 16 | | days after the
acquisition of the vehicle, the certificate | 17 | | of purchase, the
proper application and fee, and, if the | 18 | | vehicle is an abandoned mobile home
under the Abandoned | 19 | | Mobile Home Act, a certification from a local law
| 20 | | enforcement agency that the vehicle was purchased or | 21 | | acquired at a public sale
under the Abandoned Mobile Home | 22 | | Act to the Secretary of State and a salvage
certificate or | 23 | | junking certificate shall be issued in the name of that | 24 | | person.
The salvage certificate or junking certificate | 25 | | issued by the Secretary of State
under this Section shall | 26 | | be free of any lien that existed against the vehicle
prior |
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| 1 | | to the time the vehicle was acquired by the applicant | 2 | | under this Code.
| 3 | | (3) A vehicle which has been repossessed by a | 4 | | lienholder shall be
considered to be salvage only when the | 5 | | repossessed vehicle, on the date of
repossession by the | 6 | | lienholder, has sustained damage by collision, fire, | 7 | | theft,
rust corrosion, or other means so that the cost of | 8 | | repairing
such damage, including labor, would be greater | 9 | | than 50% 33 1/3% of its fair market
value without such | 10 | | damage. If the lienholder determines that such vehicle is
| 11 | | damaged in excess of 50% 33 1/3% of such fair market value, | 12 | | the lienholder shall,
before sale, transfer or assignment | 13 | | of the vehicle, make application for a
salvage | 14 | | certificate, and shall submit with such application the | 15 | | proper fee
and evidence of possession. If the facts | 16 | | required to be shown in
subsection (f) of Section 3-114 | 17 | | are satisfied, the Secretary of State shall
issue a | 18 | | salvage certificate in the name of the lienholder making | 19 | | the
application. In any case wherein the vehicle | 20 | | repossessed is not damaged in
excess of 50% 33 1/3% of its | 21 | | fair market value, the lienholder
shall comply with the | 22 | | requirements of subsections (f), (f-5), and (f-10) of
| 23 | | Section 3-114, except that the affidavit of repossession | 24 | | made by or on behalf
of the lienholder
shall also contain | 25 | | an affirmation under penalty of perjury that the vehicle
| 26 | | on
the date of sale is not
damaged in
excess of 50% 33 1/3% |
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| 1 | | of its fair market value. If the facts required to be shown
| 2 | | in subsection (f) of Section 3-114 are satisfied, the | 3 | | Secretary of State
shall issue a certificate of title as | 4 | | set forth in Section 3-116 of this Code.
The Secretary of | 5 | | State may by rule or regulation require photographs to be
| 6 | | submitted.
| 7 | | (4) A vehicle which is a part of a fleet of more than 5 | 8 | | commercial
vehicles registered in this State or any other | 9 | | state or registered
proportionately among several states | 10 | | shall be considered to be salvage when
such vehicle has | 11 | | sustained damage by collision, fire, theft, rust,
| 12 | | corrosion or similar means so that the cost of repairing | 13 | | such damage, including
labor, would be greater than 50% 33 | 14 | | 1/3% of the fair market value of the vehicle
without such | 15 | | damage. If the owner of a fleet vehicle desires to sell,
| 16 | | transfer, or assign his interest in such vehicle to a | 17 | | person within this State
other than an insurance company | 18 | | licensed to do business within this State, and
the owner | 19 | | determines that such vehicle, at the time of the proposed | 20 | | sale,
transfer or assignment is damaged in excess of 50% | 21 | | 33 1/3% of its fair market
value, the owner shall, before | 22 | | such sale, transfer or assignment, make
application for a | 23 | | salvage certificate. The application shall contain with it
| 24 | | evidence of possession of the vehicle. If the fleet | 25 | | vehicle at the time of its
sale, transfer, or assignment | 26 | | is not damaged in excess of 50% 33 1/3% of its
fair market |
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| 1 | | value, the owner shall so state in a written affirmation | 2 | | on a
form prescribed by the Secretary of State by rule or | 3 | | regulation. The
Secretary of State may by rule or | 4 | | regulation require photographs to be
submitted. Upon sale, | 5 | | transfer or assignment of the fleet vehicle the
owner | 6 | | shall mail the affirmation to the Secretary of State.
| 7 | | (5) A vehicle that has been submerged in water to the
| 8 | | point that rising water has reached over the door sill and | 9 | | has
entered the
passenger or trunk compartment is a "flood | 10 | | vehicle". A flood vehicle shall
be considered to be | 11 | | salvage only if the vehicle has sustained damage so that
| 12 | | the cost of repairing the damage, including labor, would | 13 | | be greater than 50% 33
1/3% of the fair market value of the | 14 | | vehicle without that damage. The salvage
certificate | 15 | | issued under this
Section shall indicate the word "flood", | 16 | | and the word "flood" shall be
conspicuously entered on | 17 | | subsequent titles for the vehicle. A person who
possesses | 18 | | or acquires a flood vehicle that is not damaged in excess | 19 | | of 50% 33 1/3%
of its fair market value shall make | 20 | | application for title in accordance with
Section 3-116 of | 21 | | this Code, designating the vehicle as "flood" in a manner
| 22 | | prescribed by the Secretary of State. The certificate of | 23 | | title issued shall
indicate the word "flood", and the word | 24 | | "flood" shall be conspicuously entered
on subsequent | 25 | | titles for the vehicle.
| 26 | | (6) When any licensed rebuilder, repairer, new or used |
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| 1 | | vehicle dealer, or remittance agent has submitted an | 2 | | application for title to a vehicle (other than an | 3 | | application for title to a rebuilt vehicle) that he or she | 4 | | knows or reasonably should have known to have sustained | 5 | | damages in excess of 50% 33 1/3% of the vehicle's fair | 6 | | market value without that damage; provided, however, that | 7 | | any application for a salvage certificate for a vehicle | 8 | | recovered from theft and acquired from an insurance | 9 | | company shall be made as required by paragraph (1) of this | 10 | | subsection (b). | 11 | | (c) Any person who without authority acquires, sells, | 12 | | exchanges, gives
away, transfers or destroys or offers to | 13 | | acquire, sell, exchange, give
away, transfer or destroy the | 14 | | certificate of title to any vehicle which is
a junk or salvage | 15 | | vehicle shall be guilty of a Class 3 felony.
| 16 | | (d) Except as provided under subsection (a), any person | 17 | | who knowingly fails to surrender to the Secretary of State a
| 18 | | certificate of title, salvage certificate, certificate of | 19 | | purchase or a
similarly acceptable out-of-state document of | 20 | | ownership as required under
the provisions of this Section is | 21 | | guilty of a Class A misdemeanor for a
first offense and a Class | 22 | | 4 felony for a subsequent offense; except that a
person | 23 | | licensed under this Code who violates paragraph (5) of | 24 | | subsection (b)
of this Section is
guilty of a business offense | 25 | | and shall be fined not less than $1,000 nor more
than $5,000 | 26 | | for a first offense and is guilty of a Class 4 felony
for a |
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| 1 | | second or subsequent violation.
| 2 | | (e) Any vehicle which is salvage or junk may not be driven | 3 | | or operated
on roads and highways within this State. A | 4 | | violation of this subsection is
a Class A misdemeanor. A | 5 | | salvage vehicle displaying valid special plates
issued under | 6 | | Section 3-601(b) of this Code, which is being driven to or
from | 7 | | an inspection conducted under Section 3-308 of this Code, is | 8 | | exempt
from the provisions of this subsection. A salvage | 9 | | vehicle for which a
short term permit has been issued under | 10 | | Section 3-307 of this Code is
exempt from the provisions of | 11 | | this subsection for the duration of the permit.
| 12 | | (Source: P.A. 100-104, eff. 11-9-17; 100-956, eff. 1-1-19; | 13 | | 100-1083, eff. 1-1-19; 101-81, eff. 7-12-19.)
| 14 | | (625 ILCS 5/3-301) (from Ch. 95 1/2, par. 3-301)
| 15 | | Sec. 3-301. New certificate of title for rebuilt vehicle.
| 16 | | (a) For vehicles 8 model years of age or newer, the | 17 | | Secretary of State
shall issue a new certificate of title to | 18 | | any rebuilt
vehicle or any vehicle which previously had been | 19 | | titled as salvage
in this State or any other jurisdiction upon | 20 | | the successful inspection
of the vehicle in accordance with | 21 | | Section 3-308 of this Article.
| 22 | | (b) Vehicles more than 8 model years old shall not be | 23 | | required to
complete a successful inspection required under | 24 | | Section 3-308 of this Code
before being issued a new | 25 | | certificate of title as provided under this
Section.
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| 1 | | (c) Vehicles designated as flood vehicles that have | 2 | | sustained damage
greater than 50% 33 1/3% of their fair market | 3 | | value with that damage shall be
required to complete a
| 4 | | successful
inspection required under Section 3-308 of this | 5 | | Code before being issued a new
certificate of title provided | 6 | | under paragraph (5), subsection (b) of Section
3-117.1.
| 7 | | (Source: P.A. 88-685, eff. 1-24-95; 89-669, eff. 1-1-97.)".
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